Supporting Sustainable Initiatives
Eliminate Your Electric Bill with a Solar Panel System - Part Two In my last article, I discussed how Tom DeMott, a resident of Westchester County, in New York State, had recently installed an alternative energy, solar panel generating system on his roof for a total cost of under $2,000. DeMott realized $12,000 of out-of-pocket expenses prior to receiving the NYSERDA (New York State Energy Research and Development Authority) grant and loan disbursement. He needed to have the extra cash available for about two and a half months, while applications and approvals were in process. The installer demanded $4,000 on signing of contracts and an additional $8,000 for delivery of materials to the job site. NYSERDA required materials to be delivered prior to approvals for the grant and loan. As previously discussed, DeMott’s 1,800 square foot home’s prior year’s electricity usage provided the baseline for calculation of allowable energy generation. Projecting a 3 percent increase of costs each year, NYSERDA projected a ten-year payback, followed by ‘free’ electricity thereafter. DeMott calculated a faster payback of six to seven years, taking into account rising energy costs and the impact on his taxes from the federal and state tax credits. As compared to five years ago when DeMott first began to consider this project, today NYSERDA provides interested homeowners with a long list of approved installers and an interest-free loan program with approved banks. Tom reported that the process was straightforward and uncomplicated. The loan documents were easy to understand, similar to filling out a home equity loan application. And NYSERDA stayed involved with the installer’s progress, making grant disbursements over time and only upon completion of the work. This process, from signing of contracts to final inspection for turn-on of the panels, should ideally take a maximum of four to six months. DeMott signed contracts in July, 2007 and final inspection occurred on September 4, 2008. A series of problems caused several long delays. The installer missed deadlines initially causing Tom to become ineligible for the interest-free loans. Fortunately the state recertified the interest-free loan program several months later, just as the project was finally moving forward. Delays and ineptitude continued, forcing DeMott to essentially become his own contractor. Installation was finally completed on June 30, but it took all summer for the proper building, electrical and utility inspectors to approve the work. In early September, the installer and utility inspector converged for the final equipment testing. Energy generation finally began. The frustrations and disappointment of the summer peak electrical usage not being generated from his roof panels was finally assuaged. The new meter had started to work. So, for less than $2,000 out-of-pocket cost and loan payments of slightly less than his monthly electricity bills, DeMott has installed twenty-two photovoltaic panels on the roof of his home, potentially generating all his electrical needs … with some to spare for the rest of us. __________________________________________________________
A Solar Panel System for Under $2000
The total project cost was $39,000. DeMott received a 40 percent grant/reimbursement from NYS/NYSERDA ($17,000) and a 10 year, interest-free loan ($20,000). In addiition, he received a Federal Government tax credit ($2,000) and a New York State tax credit ($5,000).
Eliminate Your Electric Bill with a Solar Panel System
by Betsy Imershein
Sure, you think, I’d love to – but it’s too expensive.
Would you believe me if I told you that for under $2,000, it might be possible
to install a system that would generate all your electricity needs, plus a little
extra to sell back to the grid? And that within ten years, all of your electricity
could be free!
Impossible, you say. If it’s that cheap, why isn’t every one doing it?
Unfortunately, not everyone can. In the
and delivery is a state-by-state affair. Each state has the power and authority
to regulate utilities and to choose how much investment they want to make in alternative energy generation. This investment takes many forms, from policies
and industry research and support, to incentives, grants and loan programs
for individuals and businesses interested in alternative energy installation.
Tom DeMott, a resident of Westchester County in New York State, has been contemplating alternative solar energy generation for about five years. He’s one
of the lucky ones, with a roof not only large enough for panel installation but facing south with few trees to block the sun. Years ago, when he began to research installers, incentives and loan programs little existed to encourage homeowners to proceed. Today,
As DeMott explained to me, his roof (with panels installed) needed to be capable of producing electricity at 85 percent of the rated efficiency, for NYSERDA approval. To translate: this means that the amount of sun hitting the photovoltaic solar panels on his roof has to generate 85 percent energy
efficiency of the panel output capacity. This demands a tremendous amount
of sun for much of the day. Once this threshold is achieved,
will pay 40 percent of installation costs up to 107 percent of your prior year’s annual usage of electricity.
But that’s not all. In addition to the 40 percent ‘gift’, NYSERDA provides
interest-free loans for most of the balance of costs. And there’s more -
New York
$2000 one, which can be spread over several years.
In New York State, DeMott’s 1,800 square foot home’s prior year’s electricity
usage provided the baseline for calculation of allowable energy generation.
Twenty-two panels have been installed, which produce 104 percent of his
energy usage from the prior year. Since New York State allows a maximum
of 107 percent of prior year’s energy usage to be generated, excess
electricity generated is ‘sold’ to the utility, with the homeowner receiving
a credit.
Next week I’ll discuss details of the DeMott installation: costs, incentives,
loan programs, selecting and working with a solar installation company, local utilities, and dealing with building and electrical inspectors. Additionally, I will suggest policy changes to attract and make it easier for more homeowners to
install solar panels for electricity generation.
DeMott home with new solar panels, during turn-on by installation company
and inspection by local utility.